Sharecast News
07 Feb, 2024 12:09 07 Feb, 2024 12:09

Europe midday: Shares slip into red; Barratt slides on Redrow takeover

European shares slipped into the red on Wednesday amid another dump of corporate earnings and trading statements, with UK housebuilder Barratt's agreed £2.5bn all-share takeover of rival Redrow among the major deals.

The pan-European Stoxx 600 index was down 0.20% at 485.76 in early deals with all regional bourses in the red.

“Market sentiment has been more “glass half full” as fresh comments from policymakers poured out about the progress made on inflation, helping lift stocks on Wall Street,” said Hargreaves Lansdown analyst Susannah Streeter.

German industrial production fell unexpectedly in December, with big falls in output from the key chemical industry.

Industrial production fell 1.6%, compared with expectations of a 0.4% decline, increasing the risk of a downward revision to fourth-quarter GDP. The figure compared with a 0.2% fall in November. On an annual basis, industrial production was down 3%.

In equity news, shares in Barratt fell after it announced its Redrow takeover. Under the terms of the deal Redrow investors will receive 1.44 new Barratt shares for their own stock which would leave them with 32.8% of the combined group and Barratt shareholders with the remainder. Redrow shares gained 13% on the news.

TeamViewer jumped after the German software developer reported higher-than-expected fourth-quarter revenue and earnings.

Sainsbury’s lost ground after saying in a strategy update that it plans to overhaul its supermarkets to focus more on food space as it looks to cut costs by £1bn over the next three years.

Smurfit Kappa gained after posting lower full-year earnings and revenue amid a "difficult" demand environment, but said that volumes returned to growth in the fourth quarter.

Reporting by Frank Prenesti for Sharecast.com


News Source: © 2024 Web Financial Group (UK) Limited. All rights reserved and terms of use apply.

Important Legal Notice about News Sources: Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news and we may not share the views of the author or publisher. We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

The value of investments can fall and you may get back less than you invested.

 

Important Legal Notice about News Sources

Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

The value of investments can fall and you may get back less than you invested.